When a customer knows that you can’t afford to lose them, they’ll often try everything in their power to wring out cost savings. But don’t give into the pressure to give them a discount. Change the tenor of the conversation by focusing on the value you create for them. Ask which features or services they’d be willing to give up to get a lower price. Doing so will move the conversation away from haggling and toward a productive discussion about what they really value. And don’t get rattled if your customer goes quiet, stops returning phone calls, and ignores you. Remember, you are their preferred supplier for a reason, and there will likely be substantial switching costs if they want to change vendors. Silence is a powerful negotiation tactic; don’t let it push you into giving a revenue-destroying discount.
Adapted from "Negotiating with Clients You Can't Afford to Lose," by Reed K. Holden
